Musk says SpaceX closed $40 billion debt financing for GPUs

Musk says SpaceX closed $40 billion in GPU debt financing

Elon Musk said on October 25 that SpaceX had closed $40 billion in debt financing for graphics processing units. He described the financing as primarily callable debt for GPU purchases expected to arrive in the first and second quarters, adding that it would not be a major factor for the then-current quarter. The reported wording left unclear what “closed” meant and whether investors had agreed to the debt’s pricing.

Musk attributed the raise to SpaceX’s investment-grade status and revenue from its Starlink satellite internet and launch businesses. The financing, as described by Musk, would provide debt proceeds to SpaceX, which would use the money to acquire GPUs; no cash payment from another company was reported.

Capital spending puts the financing in context

Chief Financial Officer Bret Johnsen said SpaceX expected fourth-quarter capital expenditure of $35 billion to $40 billion. Musk said the GPU purchases tied to the callable debt would arrive in the first and second quarters, creating a distinction between the financing announcement and the scheduled arrival of the hardware.

Reuters reported earlier in October that SpaceX was discussing a $40 billion raise with banks and asset managers for the purchase of Nvidia artificial intelligence chips. The same-day account did not provide additional terms confirming investor pricing or final allocations.

Revenue growth accompanied the announcement

SpaceX’s revenue increased 161% year over year to $14.58 billion for the three months ended September 30, according to the reported figures. AI revenue rose by almost 10 times, though the supplied evidence did not provide a complete dollar amount for that measure.

The same report said Musk viewed debt-market constraints on companies lacking substantial revenue outside AI data centers as a factor that could lead to consolidation and failures among neocloud providers. He also said SpaceX would not buy neoclouds, calling the idea “pointless.” Those comments were Musk’s forecasts and statements rather than confirmed industry outcomes.